Diversification of Horlicks Brand

Submitted By:Anupam Saha(011/1)

Anurag K(012/1)Hari Deepak M(021/1)

Horlicks : Brand OverviewHorlicks

• Hindustan Milkfood Manufacturers started manufacturing Horlicks in 1960

• GSK currently owns the brand Horlicks

Market Share

• Horlicks current market revenue: Rs. 23.05 billion, which is more than 50% of the total revenue of GSK in India

• Milk Beverages Market share: more than 50%

Hard Facts

• It is rated as the third most reliable brand in India (src: http://www.fwd2all.com/top-10-most-reliable-brands-in-india/)

• All Horlicks bottles sold in India in a year placed end-to-end would form a chain six times the length of Great-Wall-Of-China

Horlicks : Product Portfolios

Need for diversification of Horlicks brandPros ConsStagnation of the

current product portfolioExtension of product

portfolioChange in food habits of

Indians

Lack of countrywide presence (West and North have always been neglected)

Lack of proper distribution channels compared to competitors

What comes to your mind when we think

“Horlicks”?

………..Health and Nutrition

How to diversify?Diversification

under Umbrella Brand

Diversification as a separate Brand

Health related products can be diversified under the umbrella brand of ‘Horlicks’

Fruit Juice, low calories foods etc…

Products that cannot be directly related to health should be launched under a different sub-brand of GSK

Noodles, Chips, Pasta etc…

Which products to diversifyChocolatesFruit JuicesMilk DrinkIce-creamWhole range of low calories foods

Biscuits Breakfast Cereals Low calorie sweeteners etc.

Diet Substitutes

Market Entry ProcedureDetermining the size of the marketCan we create a new marketAnalysis of important competitorsNeed-Gap Analysis

Example: Low Calorie Food MarketIt should be diversified under the umbrella

brand of ‘Horlicks’It should be targeted towards working class

health-conscious peopleIncome level of this category of people is

risingMarket is growing and only a few

competitors exist in the current market scenario (ex. Britannia Nutri-Choice)

Foodles launch strategyFoodles should be launched as a separate

brand by GSKThe main USP of ‘foodles’ is taste and hence

it cannot be related to the HorlicksPeople do not view noodles as a health-

productPricing of Foodles should be on par with the

competitors productsElse Price-wars may occurCompetitors are heavyweights(like Nestle, ITC)

Distribution StrategyTie up with existing distribution channels of

different companies which are not your competitors to enter second-tier cities and villages (eg. Cavin-Kare)

When they start realizing profits over a period of time GSK should focus on ramping up it’s second layer of distributors